Lindiwe, a university student, applies for a study loan. Her uncle, Mr. Dlamini, agrees to stand surety for the loan. The bank sends a written suretyship agreement to Mr. Dlamini, but he is travelling and asks his assistant to sign the document on his behalf. Which ONE of the following statements best reflects the legal position regarding the validity of the suretyship agreement?

Question

Answer

The agreement is valid because suretyship agreements do not require a signature.

Answer

The agreement is valid as long as Mr. Dlamini verbally authorised his assistant to sign.

Answer

The agreement is valid only if Mr. Dlamini gave written authorisation to his assistant.

Answer

The agreement is invalid because Mr. Dlamini did not sign it himself.

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Lindiwe, a university student, applies for a study loan. Her uncle, Mr. Dlamini,...

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